The optimal time for the implementation of contractionary fiscal policy would be
A. before inflation accelerated.
B. after inflation accelerated.
C. after unemployment increased.
D. after the price level had risen significantly.
Answer: A
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A period in which the economy is growing at a rate significantly below normal is called a(n):
A. recession. B. peak. C. boom. D. expansion.
A consequence of adverse selection for the insurance market is that:
A. risk-seeking individuals typically pay higher premiums than risk-averse individuals. B. everyone ends up paying lower premiums. C. everyone ends up paying higher premiums. D. risk-averse individuals typically pay higher premiums than risk-seekers.
Includes spending by all levels of government on final goods and services
What will be an ideal response?
If the nominal money supply grows 6%, real income rises 2%, and the inflation rate is 5%, then the income elasticity of money demand is
A. 1.0. B. 0.75. C. 0.5. D. 1.5.